"We recommend that you use sepass instead of the operating system's passwd command and sesu instead of the su command. To do this, you need to save the original system binaries and replace them with symbolic links to sepass and sesu respectively. Once this is done, you need to make sure you can always use these utilities.”

Regarding your concern - once you have PIM implemented accordingly it would basically overrule the OS Password Policy so that this would not come into effect (as long as it is equally or less strict than the PIM pwd policy).